[hope_full]

Surely there's a formula of some kind to determine cost of gas (per gallon) based on prevailing cost per barrel? For instance, if oil is $250 a barrel, what is it per gallon?

And my bigger question, has the $140 a barrel oil hit the pumps yet? Is $4.00 a gallon reflecting the recent increases? And if NOT, how long does it take for the jump in price per barrel to be reflected at the pump?

[Serial_Worrier]

No. I refuse to accept this.

[MonteQuest]

$this->bbcode_second_pass_quote('hope_full', 'S')urely there's a formula of some kind to determine cost of gas (per gallon) based on prevailing cost per barrel? For instance, if oil is $250 a barrel, what is it per gallon?

[DantesPeak]

Oil has been driven by diesel demand since about the end of February. More specifically, large profits on diesel has made it worthwhile to refine oil even when gasoline profits are below average.

US refiners are most optimized for gasoline, so they are letting their crude and gasoline inventories run down because of low profits. When either crude or gasoline inventories fall to their minimum operating levels, gasoline supplies will fall low enough that the profit margins for gasoline will improve.

It's also possible that worldwide diesel demand will stay so strong that gasoline margins will stay low because more gasoline is made outside the US to make up for falling US output, but with China increasing demand for gasoline rapidly in the last two months, I don't think that will happen.

This is a very complicated game, plus you must consider the cost and availability of ethanol, additives, and blending components.

[MonteQuest]

Now, in June 2008...$this->bbcode_second_pass_quote('', 'E')xperts say that a common rule of thumb for relating crude oil prices to retail gasoline prices is that every one dollar increase in the price of crude oil is matched, roughly, by a five cent increase per gallon of gasoline.

[DantesPeak]

This thread also might be helpful:

Fri Feb 15, 2008 9:52 am Post subject: Alert: Gas Prices Ready to Soar

Gas Prices Ready to Soar

[MonteQuest]

Just out:

$this->bbcode_second_pass_quote('', 'E')IA analysis of the petroleum market points to the cost of crude oil as the main contributor to the record high gasoline prices that we are now experiencing.


The cost of crude oil now accounts for about 73% of the gasoline pump price. World crude oil prices are at record highs due mainly to high worldwide oil demand relative to supply. Other contributing factors include political events and conflicts in some major oil producing regions, as well as other factors.

[Serial_Worrier]

I won't be able to afford $7/gallon gas.

[threadbear]

$this->bbcode_second_pass_quote('Serial_Worrier', 'I') won't be able to afford $7/gallon gas.

[MonteQuest]

$this->bbcode_second_pass_quote('threadbear', ' ') $this->bbcode_second_pass_quote('Serial_Worrier', 'I') won't be able to afford $7/gallon gas.

[TreebeardsUncle]

With gasoline rising 2.4 cents/gallon for every dollar increase in the price of a barrel of oil, so that gas comes up about $1.00 for every $40 increase in oil's price, can expect, gas to come up from about $4.00/gallon now to $7.00/gallon then. That still won't make that big an impact outside of the big 3 auto-makers, airlines, and rvs. Yes, there will be more unemployment due to declines in tourism. However, most everyone in the states will still be driving or riding around in cars and trucks.

g

[cube]

$this->bbcode_second_pass_quote('MonteQuest', '.')...
The majority of Americans are not going to stop driving their cars until they literally can't buy gasoline at any price.

You watch and see.

[TheDude]

$this->bbcode_second_pass_quote('Serial_Worrier', 'I') won't be able to afford $7/gallon gas.

[abelardlindsay]

That many people absolutely refuse to consider carpooling I think is really funny.

At some point over the past 20 years middle class Americans -- especially women -- became absolutely petrified of strangers.

[Olle]

Please cool it a little bit. Here in Europe gas is $9/gal already and that is not painless, but we are not dying of it either...

[Fredrik]

$this->bbcode_second_pass_quote('Olle', 'P')lease cool it a little bit. Here in Europe gas is $9/gal already and that is not painless, but we are not dying of it either...